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Despite a broad-based rally, the fear gauge India VIX is also going up.

Traders are advised caution for the next two days until the RBI's Monetary Policy Committee (MPC) concludes, says Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy.

"The market is already overheated and a policy change or an unfavorable commentary may elicit a sharp reaction from the market," he said.

Nifty rose on December 5 with another (though smaller) upgap showing the strength of fund-based buying.

It made a near hanging man pattern that could portend a correction in the near term, says Deepak Jasani, Head of Retail Research, HDFC Securities.

"We will watch as to whether the successive upgaps get filled in the next few sessions. If not, then the upmove could continue towards 20,910. A break of this level could take the Nifty to 21,558 over the next few weeks. On falls, the gap level of 20,508 could offer support. Nifty could in all likelihood start to correct mildly on and from December 7," he said.

Nifty ended higher for the sixth consecutive session on December 5.

At close, Nifty was up 0.81 per cent or 168.3 points at 20,855.1.

Cash volumes on the NSE crossed Rs 1.2 lakh crore amidst increased activity from institutions including FPIs.

Broad market indices rose less than the Nifty even as the advance decline ratio fell to 0.91:1, he said.